### Analysis of the Article:
#### 3 Highlights:
1. President Biden plans to increase taxes on stock buybacks from 1% to 4% in an effort to encourage companies to invest in hiring and capital expenditures instead of repurchasing their own stock.
2. 2024 is anticipated to be a near-record year for stock buybacks, with estimates of $925 billion, driven largely by big tech companies like the “Magnificent 7.”
3. Companies have been favoring buybacks over dividends and capital expenditures, as buybacks can boost share prices by reducing shares outstanding.
#### Summary:
The article discusses President Biden’s proposal to increase taxes on stock buybacks in an attempt to steer companies towards investing in hiring and capital expenditures rather than repurchasing their own stock. Despite this, 2024 is expected to be a strong year for buybacks, with big tech companies leading the way. The article also highlights how companies have been prioritizing buybacks over dividends and capital expenditures due to the potential impact on share prices.
Editorial content by Blake Sterling
